You are paid $7.45/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (10.65%), and state tax withholding (5.7%). Your travel expenses are $5.70 per day worked. You work 12 hours over a 3-day period of time. What is your net income after travel expenses? I am just a little confused how to set up the equation to this?
50.84 for anyone still needing this answer
Source- Just took the test
its 50.82 not .84
Your travel expenses are $5.70/day, multiply by the 3 days you worked and you get $17.10.
We are going to do deductions FIRST!
Your deductions are 24% so your salary is $5.66/hr (7.45*.76) after deductions. (WE ROUND TO THE NEAREST CENT, DO NOT CARRY THE .002.)
$5.66 multiplied by 12(the hours you worked) gets you $67.92 before your travel expenses.
Subtract by $17.10 for travel and you get $50.82
It's either $54.95 or $50.82
Felix pen is correct!
50.82
To calculate your net income after travel expenses, you need to follow these steps:
1. Calculate your gross income: First, find your total earnings before any deductions. Multiply your hourly rate ($7.45) by the number of hours worked (12). So, your gross income is 7.45 x 12 = $89.40.
2. Calculate the total deductions: Add up all the deductions, which include FICA, federal tax withholding, and state tax withholding. To find the amount for each deduction, multiply the gross income by the corresponding percentage:
- FICA: $89.40 x 7.65% = $6.84
- Federal tax withholding: $89.40 x 10.65% = $9.52
- State tax withholding: $89.40 x 5.7% = $5.10
3. Calculate the total travel expenses: Multiply the daily travel expense ($5.70) by the number of days worked (3). So, the total travel expenses are 5.70 x 3 = $17.10.
4. Calculate the net income: Subtract the total deductions and travel expenses from the gross income.
Net income = Gross income - Total deductions - Total travel expenses
= $89.40 - ($6.84 + $9.52 + $5.10) - $17.10.
= $89.40 - $21.46 - $17.10.
= $50.84.
Therefore, your net income after travel expenses is $50.84.
start off with the gross.
12 hrs @ 7.45/hr = 89.40
I will assume that you deduct your expenses before taxes. In that case, the taxable income is
89.40 - 3*5.70 = 72.30
Now for the tax bite. Total tax rate is
.0765 + .1065 + .057 = .24
tax is thus .24*72.30 = 17.35
Subtract that, and your net income is
72.30-17.35 = 54.95
You could do it all in an equation, but it's easier to see by steps. In an algebraic expression, that would be
(12*7.45-3*5.70)(1-(.0765+.1065+.057)) = 54.95